Beckway’s Tariff Playbook

A dedicated team of Beckway executives has created a tariff task force to share best practices with our clients. Beckway’s Operators have developed a comprehensive Tariff Playbook outlining strategies to mitigate the impact of tariffs on businesses.

The playbook begins by providing a snapshot of the current tariff landscape, highlighting the recent executive order imposing a baseline 10% tariffand the now delayed higher reciprocal tariffs on more than 90 countries.

This order excludes specific products, including steel, aluminum, and pharmaceuticals. The playbook also considers the dynamic nature of ongoing trade negotiations, noting several countries are positioned for free trade agreements while others remain open to discussions.

Key Strategies

1.Exposure Mapping:

  • Identify affected goods and inputs within the supply chain.
  • Assess applicable tariff rates and calculate potential cost impacts.
  • Evaluate effects on supply chains and market positioning.
  • Standardize data collection and reporting processes.

2. Cost Mitigation:

  • Identify mitigation strategies such as tariff engineering and geographic diversification.
  • Evaluate the feasibility of strategies, estimate associated costs and potential savings, and assess operational impacts.
  • Prioritize and implement selected strategies.

3. Contract Review and Negotiation:

  • Examine supplier and customer contracts for clauses related to tariffs.
  • Assess negotiation leverage and develop strategies to redistribute tariff-related costs.
  • Conduct negotiations and formalize agreed-upon changes.

4. Monitoring and Advocacy:

  • Implement systems for monitoring tariff updates and assessing policy changes.
  • Identify opportunities for advocacy and systematically document key insights.

5. Financial Buffering:

  • Quantify total tariff-related costs and incorporate these costs into pricing models.
  • Update budgets and financial reserves, conduct scenario planning, and finalize strategies for financial buffering.

Insights for Industrial Manufacturers:

With the federal government imposing substantial tariffs on numerous imports, U.S. industrial manufacturers face significant challenges. Companies relying heavily on imports from China are particularly vulnerable, given that China currently faces some of the highest tariffs (145% as of April 9, 2025). Beckway, an operating partner for private equity-owned portfolio companies, is actively assisting U.S. firms in crafting comprehensive responses to minimize tariff impacts. Our approach includes targeted strategies in the following areas:

  • Procurement: Secure cost-effective alternative suppliers and hedge against price increases.
  • R&D/Product Development: Redesign products to reduce dependency on tariffed materials.
  • Manufacturing: Optimize production plans, enhance yield efficiencies, and reduce costs.
  • Sales/Finance: Refine pricing strategies to maintain profitability.

In the hands of our operators, the Beckway Tariff Playbook offers a structured and adaptive approach, ensuring businesses can effectively navigate and thrive despite evolving trade policies.

Contact Beckway Partner, Craig Unis (cunis@beckway.com), today to leverage our Tariff Playbook and position your business for success in this challenging environment.